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Common reasons for Defective Income Tax Returns

Central Processing center(CPC) has list out the most common reasons for non processing of Income Tax returns .Due to these reasons return are defective and pending for processing at CPC. We are sharing it with you so that you should give special notice on these common errors .

Currently CPC is unable to process over 2 lakhs returns which have been classified as defective under CPC’s business rules. Assessees are requested to avoid errors mentioned below which are among the top reasons for the return to be classified as defective:

ITR 4 - The assessee has not filled Part A P&L or Balance Sheet or both and gross receipts as per and has entered a positive value in Schedule BP serial no1. This is the single largest reason for returns being classified as defective

ITR 4 - P&L “Sales/Gross receipts of business or profession” is greater than 60 lakhs and AUDIT INFORMATION not completely filled.

ITR 4S - has been filed but presumptive income u/s 44AD is less than 8% of Gross Receipt or Sales turnover u/s 44AE is less than Rs5000 p.m. per vehicle in case of heavy vehicles or`less than 4500 p.m. per vehicle in case of other vehicles.

ITR 4S - has been filled but Code mentioned under Nature of Business is 601 or 602 or 603 or 604 which are incorrect codes.

ITR 1- Tax Deducted as per Schedule TDS 1 is greater than GTI (Gross Total Income)

ITR 1- Tax Deducted as per Schedule TDS 2 is greater than GTI (Gross Total Income)

Depreciation claimed in Point 42 of Part A – P&L but Schedule DPM /DOA not filled.